Gems and jewellery contribute to about 14 per cent to the country’s overall exports.

The rise during the two-month period was mainly supported by silver exports at US$ 673.60 million up 176.18 per cent from US$ 243.90 million a year ago.

Exports of cut and polished diamonds increased to US$ 3.75 billion during April-May, from US$ 3.4 billion a year ago.

In 2015-16, the exports dipped 11.7 per cent to US$ 31.98 billion.

“The decline in exports was mainly affected by slowdown in Europe, Japan and China. However, the US is picking up slowly, which is helping in registering positive growth in the sector,” an official was quoted by PTI as saying.

However, shipments of gold jewellery contracted 10 per cent to US$ 535 million during the two months under review.

Exports of gold medallion and coins too dipped marginally to US$ 343 million, from US$ 346 million in April-May 2015-16.

The government is hoping that incentives such as 3 per cent interest subsidy and enhanced rate for duty drawback would further help contain the decline in exports.

According to GJEPC data, imports of rough diamonds rose by 26.35 per cent to US$ 3.40 billion in April-May 2016. Imports of gold bars too grew by about 83 per cent to US$ 933 million.